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Friday, November 15, 2013

PPT On Statement of Retained Earnings


Statement of Retained Earnings Presentation Transcript:
1.The Statement of Retained Earnings

2.Statement of Retained Earnings
The Statement of Retained Earnings reports how net income and dividends affected a company’s financial position during the period.

3.It is one of the main financial statements that are issued in the audited financial statements of any entity on annual basis.

4.The format of the statement is:
Beg. balance, retained earnings
+  Net income
-   Dividends
    End. balance, retained earnings

5.Note that the Income Statement must be prepared before the Statement of Retained Earnings.
This is because you have to know the amount of net income in order to compute the ending balance of retained earnings.

6.The amounts reported in the Retained Earnings are carried to the Balance Sheet. Therefore, certain amounts in the Balance Sheet are derived from this statement.

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